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1998 Supreme(P&H) 1620

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARSH BUNGER, J.
Baljit Singh and another - Petitioner
Vs.
State of Punjab and others - Respondent
CWP-12332-1998 (O&M)
Decided On : 07-04-2026

Advocates:
Advocate Appeared:
For the Petitioner:Mr. C.L. Sharma, Advocate
For the Respondent: Mr. Harpreet Singh, AAG, Punjab

An auction of public property cannot be cancelled for non-payment of the balance amount without first attempting to recover the dues as arrears of land revenue, as mandated by statutory rules. Furthermore, a conditional appellate order is rendered final once the specified conditions are satisfied by the party.

Headnote:(A) Public Property Disposal Rules - Rule 6(6)(xiii) - Auction of public property - Failure to deposit balance amount - Recovery of balance as arrears of land revenue - Requirement of notice - Principles of natural justice - Where an auction purchaser is not served with notice regarding confirmation of sale or demand for balance, cancellation of auction is unjustified - Authority is duty-bound to attempt recovery of balance as arrears of land revenue before resorting to cancellation and re-auction. (Paras 13, 18, 20)

(B) Appellate Jurisdiction - Conditional orders - Compliance with conditions - Where an appellate authority passes a conditional order allowing a party to retain property upon payment of interest within a stipulated period, and such condition is duly complied with, the order attains finality - Parties cannot challenge the order after waiting for the expiry of the stipulated period to see if the condition is met. (Paras 15, 16)

Facts of the case:
Property was auctioned and the highest bidder failed to deposit the balance amount. The sale was cancelled and the property was re-auctioned. The original bidder challenged the cancellation on grounds of lack of notice and violation of natural justice. The appellate authority set aside the cancellation, allowing the original bidder to pay the balance and interest. The subsequent bidder challenged this, but the original bidder complied with the conditions set by the appellate authority.

Findings of Court:
The appellate authority correctly identified that the failure to recover the balance as arrears of land revenue was contrary to the rules. The original bidder complied with the conditional order by paying the balance and interest within the stipulated time, and the sale certificate was issued accordingly.

Issues: Whether the cancellation of the initial auction was valid without proper notice and whether the appellate authority's conditional order was sustainable.

Ratio Decidendi: The court held that the authority must follow the prescribed procedure for recovery of dues as arrears of land revenue before cancelling an auction. Furthermore, once a conditional order is complied with by the party, the challenge to such an order becomes infructuous.

Result: Petition dismissed.

Table of Content
1. factual history of property auction and procedural litigation timeline. (Para 1 , 2 , 3 , 5 , 6 , 7 , 8 , 12)
2. arguments concerning violation of natural justice, payment delays, and statutory compliance. (Para 4 , 9 , 10 , 11)
3. validity of conditional orders and effective compliance by auction purchasers. (Para 13 , 14 , 15 , 16)
4. requirement to recover balance dues as land revenue under punjab package deal properties rules. (Para 17 , 18 , 19 , 20)
5. dismissal of writ petition upon confirming compliance with auction conditions. (Para 21 , 22)

sJUDGMENT :

HARSH BUNGER J.

1 Petition herein is, filed under Articles 226/227 of the Constitution of India, seeking a writ in the nature of Certiorari, for setting aside the order dated 04.03.1998 (Annexure P-5) passed by learned Commissioner, Ferozepur Division, Ferozepur.

1.1 A further prayer has been made for directing cancellation of sale of plot in favour of respondents No.6 and 7 herein and to further confirm the auction in favour of the petitioners.

2. Briefly, a plot measuring 2 kanals and 5 marlas comprised in khasra No.186//1/3min(1-17), 2/1/1(0-8) situated at Ferozepur was put to auction on 22.01.1980; wherein respondents No.6 and 7 were the successful bidders for the amount of Rs.24,200/-. It appears that the earnest money was deposited at the spot; however the balance was to be paid upon confirmation of sale by the learned Sales Commissioner.

3. It appears that the aforesaid sale in favour of respondents No.6 and 7 was confirmed on 20.10.1980; however, the learned Tehsildar (Sales) vide order dated 14.04.1981 (Annexure P-1) cancelled the sale in favour of respondents No.6 and 7 on the ground that the auction purchaser had failed to deposit the balance amount; accordingly earnest money of Rs.4840/- deposited by respondents No.6 and 7 were forfeited and a further direction was issued to re-auction the land. It appears that the aforesaid property was re-auctioned on 19.05.1983, wherein the present petitioners were the highest bidder for an amount of Rs.24,300/-; however, the said auction was neither confirmed by the learned Sales Commissioner nor it was rejected.

4. It transpires that in January, 1994, respondents No.6 and 7 challenged the order dated 14.04.1981 (Annexure P-1) by filing an appeal before the learned Sales Commissioner, Ferozepur, inter alia, on the plea that no notice was given to them before passing the aforesaid order dated 14.04.1981 (Annexure P-1) nor they were heard, which was the violation of principles of natural justice. It was pleaded that, the balance amount was to be paid only after confirmation of the sale by the learned Sales Commissioner; however, no notice regarding this was given to them. It was further pleaded that, they were in the possession of the land in question and upon learning about the order dated 14.04.1981 (Annexure P-1) on 28.12.1993 from the office of learned Tehsildar, they immediately filed an appeal; accordingly they prayed that the aforesaid order dated 14.04.1981 be set aside and they may be permitted to deposit the balance amount.

5. The learned Sales Commissioner, Ferozepur vide order dated 31.01.1994 (Annexure P-2) came to the conclusion that neither notice was given to respondents No.6 and 7 before cancellation of sale in their favour nor any notice regarding depositing of amount was issued to them after the confirmation of sales by the learned Sales Commissioner; accordingly, the appeal filed by respondents No.6 and 7 was accepted and the matter was remanded to the learned Tehsildar (Sales) for fresh decision, after affording opportunity to respondents No.6 and 7 herein.

5.1. It appears that on remand, learned Tehsildar (Sales) vide order dated 16.05.1994 (Annexure P-3) allowed respondents No.6 and 7 herein to deposit the balance amount.

6. Thereafter, the present petitioners preferred an appeal against the aforesaid order dated 16.05.1994 (Annexure P-3) before the learned Chief Sales Commissioner, Ferozepur w

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